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<br />The City of San Marcos Facilities Service Contract <br /> <br />operated in a manner so as to comply with the Performance Guarantees. To the extent that <br />requested relief is not granted, or if no such relief or modification has been requested, following <br />expiration of the grace period, the Company will be responsible for complying with Applicable <br />Law and the Performance Guarantees with respect to the new conditions for the remainder of <br />the Term. <br /> <br />(E) City Capital Project. The City shall undertake, continue and complete <br />the City Capital Project substantially in accordance with the plans and specifications therefor <br />developed as of the Contract Date, and in a manner that does not materially interfere with the <br />performance by the Company of its obligations hereunder. Upon completion and successful <br />testing evidencing compliance with any applicable performance standards, the City Capital <br />Project shall be considered to be part of the Facilities and the Company shall assume the <br />operation, maintenance, repair, replacement and management responsibility with respect <br />thereto in accordance with the Contract Standards. The Base Fee includes compensation for <br />the operation, maintenance, repair and replacement of the City Capital Project and the <br />Company shall not be entitled to any further compensation associated therewith. <br />(F) Acceptance of "As-Is" Risk - City Facilities Property. The Company <br />accepts for its use in providing the Contract Services all of the City Facilities Property described <br />in Section 1.4 of Appendix 1, in its existing "as-is" condition as of the Commencement Date. <br />SECTION 7.8. SERVICE COORDINATION. (A) Company's Facilities <br />Manager. The Company shall appoint a Facilities Manager for the Facilities and the Contract <br />Services (the "Facilities Manager") who shall be licensed and certified as a Grade A Licensed <br />Wastewater Treatment Facilities operator by the State of Texas, trained, experienced and <br />proficient in the management and operation of advanced tertiary wastewater treatment systems <br />comparable to the City's Facilities and appropriately familiar with the day-to-day operation, <br />maintenance, repair and replacement activities of the Facilities. The Facilities Manager shall <br />(1) be responsible for the management and provision of the Contract Services provided to the <br />City hereunder, (2) be responsible for the day-to-day management of the Facilities, and <br />(3) serve as the day to day business representative of the Company in the performance of this <br />Service Contract. The initial Facilities Manager shall be Mike Beck, who shall not be replaced <br />for a period of one year from the Commencement Date, unless otherwise approved by the City <br />in its sole discretion, absent retirement, resignation or cessation of employment with the <br />Company. The Company shall replace the Facilities Manager at the request of the City, after <br />notice and a reasonable opportunity for corrective action, in the event the City determines, in <br />its sole discretion, that an unworkable relationship has developed between the Facilities <br />Manager and the City. <br />(B) City Approval of Replacement Facilities Manager. The Company <br />acknowledges that the performance of the Facilities Manager serving from time to time will <br /> <br />39 <br />